Saudi Arabia’s tourism sector attracts $13 billion in investments, eyes $85 billion in revenue

Kingdom positions itself as a premier travel destination with ambitious growth plans

The government aims to secure up to $80 billion in private tourism investment by 2030

Published: Mon 18 Mar 2024, 1:54 PM

Saudi Arabia has emerged as a tourism hub, attracting approximately $13 billion in private investments for its thriving tourism sector. With ambitious plans to introduce 150,000 to 200,000 new hotel rooms within the next two years, the Kingdom is poised to elevate its tourism offerings and bolster its position on the global tourism map in line with Vision 2030.

Ambitious revenue targets

Princess Haifa Bint Mohammed Al Saud, Saudi Arabia’s vice minister of tourism, disclosed the Kingdom’s goal to increase tourism revenues to $85 billion this year, a significant rise from around $66 billion in 2023. This initiative aligns with Crown Prince Mohammed bin Salman’s broader economic vision, which aims to diversify the nation’s income sources beyond oil, encompassing sectors such as sports and technology.

Currently contributing 4.5 percent to Saudi Arabia’s gross domestic product, the tourism sector aims to achieve a 10 percent contribution by 2030. Therefore, Saudi Arabia is directing substantial investments into large-scale development projects like the Qiddiya Entertainment City, underscoring its dedication to enhancing tourism infrastructure and attractions. Additionally, significant investments in football further enhance the Kingdom’s global appeal as a travel destination.

Investment plans

Saudi Arabia, the sole bidder for hosting the 2034 World Cup, welcomed 100 million tourists in 2023, predominantly domestic travelers. Meanwhile, international visitors accounted for approximately 27 million. The majority of tourists visited the country for religious or business purposes.

However, Saudi Arabia anticipates a rise in leisure travel as major tourism projects continue to unfold. Looking ahead, the government aims to secure up to $80 billion in private tourism investment by 2030. Moreover, it plans to inject around $800 billion into the sector over the next decade, further solidifying its commitment to tourism development. With a strategic focus on diversifying revenue streams and enhancing infrastructure, the Kingdom will emerge as a premier travel destination on the global stage.

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